11 Ways to Recession Proof Your Retirement Amid Economic Uncertainty

Planning for retirement can be stressful as you figure out where to invest your money and how to build a successful retirement portfolio.

But recessions can happen at any time, even during your retirement, and you may not be prepared if your portfolio takes a hit.

So what can you do to recession-proof your retirement and ride out the storm? Here are a few things to plan for just in case.

It's a good idea to crush your debt before retirement under normal circumstances. After all, you don't want that additional debt hanging over your head when you retire and have to use some of your retirement savings to pay down debt.

But it's also important to get that debt off your balance sheet so you're not dragged down by the additional costs during a recession. Your investments may decline during a recession, but your debt will always be there until you pay it off.

You may be worried about investments in the stock market or real estate that could be affected by a recession.

Instead, consider moving some money to a savings account so you can keep it in a safe place that isn't as risky as the stock market. You'll also want to look into a high-yield savings account that can earn you extra cash during a recession.

You may be on a fixed income when you retire, but that doesn't mean you should stay on a fixed budget.

It's a good idea to revisit your retirement budget regularly to update changes to costs you have to pay like groceries or utilities, and factor in price changes due to a recession.

You should also take a closer look at ways seniors throw away money to shore up any places you may be tossing dollars away instead of keeping them in your pocket.

An emergency fund is an important piece of any budget regardless of whether you're working or retired. It can help you cover unexpected costs from a health emergency, car accident, major home repair, or other issues without needing to dip into retirement funds.

Remember to top off your emergency fund before you retire so you have it available in case something happens. It becomes even more vital when you have to lock down other investments to get you through an economic downturn.

You may be invested in the stock market with your former employer's 401(k) or an IRA. And while these types of accounts are invested in the stock market, you can still adjust them as you need to if there's a recession.

Make sure your portfolio is invested in stocks and other options that aren't prone to excessive risk. You may have been able to weather economic upheaval when you were younger and had time to earn that money back, but retirement is a good time to rebalance your portfolio and put funds in more stable investments.

Just because you're retired doesn't mean you can't work, and there are side hustles you may enjoy while bringing in extra income to get through a recession.

Consider becoming a tutor for students, baking cakes and cookies, selling things online, or finding a great side hustle that utilizes skills you used in your professional life that can help you pad your retirement funds during a recession.

You'll thank yourself for delaying your Social Security payouts to have more cash on hand when a recession hits.

Waiting to get your Social Security distribution can help you boost the amount of money you receive each month. So pushing back your first Social Security check could mean you get more each month to help you through a recession.

Pro tip: Need to know how to estimate your Social Security payments? The Social Security Administration offers an online calculator to help you compare your monthly income based on how much you make and when you start collecting payments.

Sometimes it may be a good idea to bring on someone who can help you build a recession-proof portfolio and navigate through a downturn in the market.

Consider finding a financial advisor who can help you with your cash, stocks, real estate, and other investments. It's also a good idea to find a financial advisor that specializes in retirement planning to get you the best outcomes under tough financial circumstances.

It can be frustrating to add money to a retirement account that's going downhill if you're working and investing during a recession.

But investing during a recession could be a good thing as you'll be investing when the stock market or other investments are down. That money you're investing during a recession could rebound before you retire and give you better returns.

You don't have to spend money during a recession if you can find additional ways to save it.

Check out ways retirees can save extra cash such as taking advantage of senior discounts. You may be surprised by how many different retailers offer deals for seniors that can help you keep extra money in your pocket. So do some digging and see where you can take advantage of discounts to get you through a recession.

You may be excited to spend your retirement years traveling around the world or tinkering with a car, boat, or second home you always wanted.

But think about holding off on those major purchases during a recession. It's important to have that extra cash on hand if you need it for everyday costs. You may even want to invest it to take advantage of lower prices.

Planning for retirement and growing your wealth can be daunting tasks, but you may be doing better financially than you think.

Remember to create both a current budget and an estimated retirement budget to find out how much you may need in the future and where you can get that money now to save it for later.

It's also a good idea to create additional estimated retirement budgets for different scenarios like a recession so you know you'll be ready to adjust your plans if the economy changes.